Will TJX’s Homesense repeat the success of HomeGoods?
Customers apparently can’t get enough of TJX’s home goods offerings. There was an impressive turnout for the opening of the company’s first Homesense store, a spinoff of TJX’s existing home goods retailer, HomeGoods.
Customers were lined up down the block for the opening of the first Homesense location in Framingham, Massachusetts (the city that is home to TJX’s headquarters) on August 17th, according to People.
There are a few distinctions between Homesense and the otherwise similar HomeGoods chain. Homesense doesn’t feature a children’s or pet department and has an expanded selection of lighting, art and furniture. It also has a “general store” section featuring cleaning products and products to help manage home organization. The store’s offerings are also arranged by color, to help shoppers find items that match.
One might expect that having two home furnishings stores in the same market would result in cannibalization, prompting TJX to choose between opening one store or another in a given market. But in February when the new, then unnamed, chain was first announced, TJX CEO Ernie Herrman stated that the company would be encouraging customers to shop both stores.
While one umbrella company launching a second home furnishings chain may be unorthodox, it’s clear that the first chain is an unqualified success. HomeGoods has experienced an “explosive” growth trajectory, according to The Motley Fool, opening more than 200 locations in the past five years while nearly doubling its revenue. HomeGoods’ total sales were up 17 percent last quarter.
Though TJX already owns a chain of home furnishings stores throughout Canada and Europe also known as Homesense, the new U.S. chain is reported to be distinct. Homesense abroad features at least 44 locations in the U.K. at present, according to Domino.
TJX-owned value retailers like T.J. Maxx have thrived in recent years thanks to their low prices and “treasure hunt” sales strategy, which keeps customers engaged and coming back to find new, exciting items.
- Taking It to the Streets! Shoppers Mob the First Homesense Store Opening in Massachusetts: See the Photos – People
- Will a new TJX concept put more hurt on department stores? – RetailWire
- HomeGoods Continues to Excel for Off-Price Giant TJX – The Motley Fool
- A HomeGoods Sister Store Is Coming To The U.S. – Domino
DISCUSSION QUESTIONS: Why do you think Homesense is creating excitement among customers, many of whom already seem to shop at HomeGoods? Will Homesense’s success outlast the hype? Can Homesense and HomeGoods exist in the same markets without cannibalizing sales?